BILL REQ. #:  H-0347.1 

Read first time 01/14/09.   Referred to Committee on Finance.

     AN ACT Relating to business and occupation tax credits for employers of certain military personnel; and adding a new section to chapter 82.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 82.04 RCW to read as follows:
     (1)(a) In computing the tax due under this chapter, a credit is allowed as follows:
     (i) For a qualified entity with an employee who is a member of the Washington national guard or Washington state guard called to active service for an emergency declared by the governor under chapter 43.06 RCW, a credit of one percent of the tax due under this chapter for the period that the employee is in active service for the purpose of such emergency.
     (ii) For a qualified entity with an employee who is a member of the Washington national guard called to active service for a Title 10 U.S.C. deployment, a credit of five percent of the tax due under this chapter for the period that the employee is deployed.
     (b) "Qualified entity" means a small business as defined in RCW 19.85.020, with an employee who is a member of the Washington state guard or Washington national guard, and who retains the employee for a period of at least six months after the qualified period.
     (2) A person taking a tax credit under this section must make an annual report to the department. The report must be in a letter form and must include documentation showing the status of the employee and notice of the call to active service or deployment.
     (3) No credit may be taken under this section for a call to active service or deployment prior to the effective date of this act. No refunds may be granted for any credits due under this section.